Governor Shane Emerson today introduced an amendment to the Texas Strategic Investment and Job Creation Act of 2026 that would remove data centers from the list of projects eligible for temporary property-tax abatements, state infrastructure assistance, and expedited permitting.

“Public incentives should support projects that create large numbers of stable, well-paying jobs and deliver lasting benefits to working families,” Governor Emerson said. “Data centers can require enormous amounts of electricity, water, and public infrastructure while employing relatively few permanent workers once construction is complete. Taxpayers should not be asked to subsidize that kind of imbalance.”

The underlying legislation would provide targeted incentives for major developments that meet job-creation and revenue requirements, with clawbacks for projects that fail to deliver on their commitments. Emerson’s amendment would preserve those tools for factories, mixed-use developments, sports venues, and other qualifying projects while excluding data centers.

“This is not an argument against technology or private investment,” Emerson added. “Companies remain free to build data centers where the market supports them. But scarce public dollars should be reserved for projects that strengthen communities, expand the skilled workforce, and create dependable careers—not simply increase demand on the grid.”

Emerson called on legislators from both parties to support the amendment and ensure that economic-development policy remains focused on measurable employment, responsible use of public resources, and long-term local growth.

“Every incentive must answer one basic question: What are working people getting in return?” Emerson said. “When the answer is too few jobs and too much public cost, we should have the courage to say no.”